If you pay the premium for this coverage for a covered watercraft, then subsection 1. of the Limits of Liability provision under this Part IV shall not apply, and the following provision shall apply to a loss to that covered watercraft:
1. The limit of liability for a covered watercraft for which Agreed Value Coverage was purchased is as follows:
a. for a loss that we determine to be a total loss to the covered watercraft, our limit of liability is the agreed value for the covered watercraft, reduced by the applicable deductible;
b. for a loss to the covered watercraft that we determine to not be a total loss, our limit of liability is the lowest of:
(i)
the amount necessary to replace the stolen or damaged property, reduced by the applicable deductible;
(ii)
the amount necessary to repair the damaged property to its pre-loss physical condition, reduced by the applicable deductible; or
(iii)
the agreed value for the covered watercraft, reduced by the applicable
deductible.